Lots of stops were triggered yesterday in the JPY crosses, particularly in AUD/JPY during Asia and GBP/JPY during early Europe and we now walk in to markets at much higher levels. You can forget about trend and sentiment for the near term, flows are dominating and will increasingly do so as we enter the holiday season in the Northern hemisphere- major option plays in EUR/USD and massive flows as Jamie mentioned in his wrap. If you know where the stop-losses are during any particular session, then I think you know where the market is going.

I am now long EUR/JPY after the trend line we looked at yesterday morning held again. The 100-day/200-day cross was my macro buy signal and I’m hoping for a sharp violent move to 150- well there’s no harm in hoping! More likely is that we see choppy consolidation now between 132/135 and I will try and trade this range in the short term with a stop on my strategy below 131.00.

Good luck today.